In this episode, we welcome Nick Weaver back for a special appearance thanks to the time-shifting powers of podcast software. He does a sack dance over cryptocurrency, flagging both China’s ban on cryptocurrency transactions and the U.S. Treasury’s sanctioning of the SUEX crypto exchange.

Maury Shenk explains the plans that the Biden administration and the EU have for Big Tech and the rest of us. Hint: it involves more content moderation in support of, err, democracy.

Adam Candeub gives us a tour of Wall Street Journal’s the deeply reported series on Facebook’s difficulties managing the social consequences of, well, the internet, a responsibility that the press is determined to impose on the company. Among the quasi-scandals turned up by the Wall Street Journal is details on the list of “secret elite” of users protected from Facebook’s clunky and clueless content moderation algorithms. But really, in today’s world, true power is about escaping the clueless algorithms otherwise imposed on us by various authorities. We all aspire to join that elite. And perhaps we all can, if Ohio’s Attorney General and its latest Senate candidate get their way, making Google into a common carrier. (If that happens, we’ll credit Adam, who wrote an amicus brief in support.)

And what’s an elite without its hands on the levers of industry? China’s embrace of national champions on the world stage has forced a rethinking in the West of industrial policy. So, the auto industry’s commercial problem (they want cheap, plentiful, and antiquated chips for their cars) is suddenly a matter for White House meetings, and hints that the government might have its own supply allocation plans.

In fact, regulating the private sector is so in vogue, as long as it’s a tech-ish private sector, that California barely made news when it imposed a new and almost undefinable regulatory obligation on warehouse companies like Amazon. At bottom, I argue, this is yet another attempt to put workers back on top of the algorithm—by demanding that it explain itself.

Maury next takes us to the heart of algorithmic power and our unease with it, explaining that Google now admits that it has no idea how to make AI less toxic.

In quick hits:

• Washington whispers about Zoom’s ties to China have grown louder, as the U.S. government announces a national security review of its proposed acquisition of Five9 for $15 billion. 
• Contrary to my understanding, at least one former intel operative who went to work for the United Arab Emirates in Project Raven landed very much on his feet—as CTO at ExpressVPN, though company employees have been expressing unhappiness about his history.
• And podcast regular Dmitri Alperovitch has an op-ed in the New York Times that urges much tougher tactics in the fight against ransomware gangs. 

And more!

Download the 376th Episode (mp3) 

You can subscribe to The Cyberlaw Podcast using iTunes, Google Play, Spotify, Pocket Casts, or our RSS feed. As always, The Cyberlaw Podcast is open to feedback. Be sure to engage with @stewartbaker on Twitter. Send your questions, comments, and suggestions for topics or interviewees to CyberlawPodcast@steptoe.com. Remember: If your suggested guest appears on the show, we will send you a highly coveted Cyberlaw Podcast mug!

The views expressed in this podcast are those of the speakers and do not reflect the opinions of their institutions, clients, friends, families, or pets.

Jordan Schneider rejoins us after too long an absence to summarize the tech policy coming out of Beijing today:  Any Chinese government agency with a beef against a tech company has carte blanche to at least try it out. From Didi and others being told to stop taking on subscribers to an end to Western IPOs, to the forced contributions to common welfare, China’s beefs with Big Tech sound a lot like those in the West (well, except for the complaints about AI-enabled censorship). What’s different is that China has freed up its agencies to actually throw sand in the gears of technology businesses. Jordan and I explore the downside of empowering agencies this way. First, it makes the Chinese government responsible for an enormous and hard to govern part of the economy, as the government’s problems with the overvalued property sector show. And it creates opportunities for companies that are better at politics than customer service to cripple their competitors.

Meanwhile, the U.S. government is trying out its own version of letting a thousand regulatory flowers bloom. Michael Weiner unpacks the new, amended complaint in FTC v. Facebook and concludes that the FTC has done a plausible job of meeting the objections that led the district court to throw out the first complaint.

Then he tells us the five buckets of sand the Biden administration is dumping into technology merger law in the hope of slowing a massive acquisition boom, from no longer granting early termination, insisting on future merger approvals in standard consent agreements, issuing “close at your own peril” letters when they haven’t finished their review, and replacing the Vertical Merger Guidelines issued in June 2020 with, uh, nothing.

Pete Jeydel takes us on a tour of Project Raven and the deferred prosecution agreements imposed on three former U.S. government hackers who sold their services too freely to the United Arab Emirates. The cases raise several novel legal issues, but one of the mysteries is why the prosecutors ultimately settled the cases without jail time. My guess? Graymail.

In quick hits and updates we note: That TikTok faces an Irish General Data Protection Regulation probe over children’s data and–more significantly–its transfers of data to China. What’s most remarkable to me is how long TikTok has staved off this scrutiny. Who says Donald Trump was bad for Chinese tech companies?

President Biden has nominated a 5th Federal Trade Commission Commissioner. Alvaro Bedoya is a Georgetown Law professor who writes about privacy and face recognition. There’s a lot of dumb stuff out there about AI bias and face recognition, but I’m pleased to say that it doesn’t look as though Prof. Bedoya wrote any of it.

The special prosecutor for Russia-Russia-Russia-gate has indicted a Perkins Coie lawyer for lying to the FBI general counsel while turning over a bunch of bogus evidence of Donald Trump’s ties to Russia. Turns out, I know all of the principals in this drama, and it’s uncomfortable.

Captain Obvious, speaking for the FBI, acknowledged that there is “no indication” Russia has cracked down on ransomware gangs after President Biden yelled at Vladimir Putin about them.

The 4th Circuit has tossed Wikimedia’s money-wasting lawsuit against the National Security Agency for its collection of overseas intelligence in the U.S.

And the Bolsonaro’s ban on social media censorship of politicians has been doubly overturned by the Brazilian Senate and its Supreme Court, leaving Bolsonaro’s decree in the same place as Florida’s (and, probably soon, Texas’s) effort to do something similar.

And more!

Download the 375th Episode (mp3)  

You can subscribe to The Cyberlaw Podcast using iTunes, Google Play, Spotify, Pocket Casts, or our RSS feed. As always, The Cyberlaw Podcast is open to feedback. Be sure to engage with @stewartbaker on Twitter. Send your questions, comments, and suggestions for topics or interviewees to CyberlawPodcast@steptoe.com. Remember: If your suggested guest appears on the show, we will send you a highly coveted Cyberlaw Podcast mug!

The views expressed in this podcast are those of the speakers and do not reflect the opinions of their institutions, clients, friends, families, or pets.

The district court has ruled in the lawsuit between Epic and Apple over access to the Apple app store. Apple is claiming victory and Epic is appealing. But Apple’s victory is not complete, and may have a worm at its core. Jamil Jaffer explains.Surprised that ransomware gangs REvil and Groove are back—and thumbing their noses at President Biden? Dmitri Alperovitch isn’t. He explains why U.S. ransomware policy has failed so far.

WhatsApp has finally figured out how to let users encrypt their chat backups in the cloud, to the surprise of many users who didn’t realize their backups weren’t encrypted.

Speaking of the encryption debate, Dmitri notes that Proton Mail joined the scrum this week, in a way it no doubt regrets. After all its bragging that mail users’ privacy is “protected by Swiss law,” Proton Mail disclosed that Swiss law can be surprisingly law enforcement friendly. Responding to a French request through Europol, Swiss authorities ordered the service to collect metadata on a particular account and overrode what had been seen as a Swiss legal requirement that users be notified promptly of such actions. 

Is China suffering from Russia’s Main Intelligence Directorate (GRU) envy? I ask and David Kris answers: It sure looks that way, as China has begun trying to rally Chinese in America to support Chinese government positions on things like the origin of COVID. So far, China’s record of success is as dismal as the GRU’s but I argue that it poses a bigger problem for the body politic and Chinese American interest groups.

Who’d have guessed? Turns out that the EU’s always-flakey General Data Protection Regulation (GDPR) provision against allowing automated decision making that affects people isn’t just a charming nostalgia act; it’s yet another reason for Europe to be left behind in the technology race. Jamil reports on a high-powered UK task force recommendation that the Brits dump the provision in order to allow for the growth of an AI industry.

David and I debate the meaning of Brazilian President Jair Bolsonaro banning social networks from removing political posts.

And in a few quick hits:

• I praise the Biden administration (faintly) for finally kicking off serious negotiations with the EU about transatlantic data transfer.
• Dmitri dissects the undiplomatic speech of China’s ambassador to the U.S.
• David downloads the inside poop on smart toilets. Among other things, they’ll be identifying us with, uh, let’s just call it the opposite of facial recognition. 
• And Dmitri offers a solution for the dual European Community encryption story.

And more!

Download the 374th Episode (mp3) 

You can subscribe to The Cyberlaw Podcast using iTunes, Google Play, Spotify, Pocket Casts, or our RSS feed. As always, The Cyberlaw Podcast is open to feedback. Be sure to engage with @stewartbaker on Twitter. Send your questions, comments, and suggestions for topics or interviewees to CyberlawPodcast@steptoe.com. Remember: If your suggested guest appears on the show, we will send you a highly coveted Cyberlaw Podcast mug!

The views expressed in this podcast are those of the speakers and do not reflect the opinions of their institutions, clients, friends, families, or pets.

Back at last from hiatus, the podcast finds a host of hot issues to cover. Matthew Heiman walks us through all the ways that China and the U.S. found to get in each other’s way on technology. China’s new data security and privacy laws take effect this fall, and in keeping with a longstanding theme of the podcast—that privacy law is mostly about protecting the privilege of the powerful—we muse on the ways that legal innovations in the West have empowered China’s rulers. The SEC is tightening the screws on Chinese companies that want to list on American exchanges. Meanwhile, SenseTime is going forward with a $2 billion IPO in Hong Kong despite being subject to the stiffest possible Commerce Department sanctions. Talk about decoupling!

In Washington, remarkably, a bipartisan breach notification law is moving “We Can’t Run a Twelfth-Century Regime Without WhatsApp!” through both House and Senate. Michael Ellis explains the unorthodox (but hardly unprecedented) path the law is likely to take—a “preconference” followed by attachment to the defense authorization bill scheduled to pass this fall. 

I ask Brian Egan for the tech fallout from the fall of the U.S.-backed regime in Afghanistan. All things considered, it’s modest. Despite hand-wringing over data left behind, that data may not be really accessible. Google isn’t likely to turn over government emails to the new regime, if only because US sanctions make that legally risky. The Taliban’s use of WhatsApp is likely to suffer from the same sanctions barrier.  I predict a Taliban complaint that it’s being forced to run a thirteenth century regime with twelfth century technology.

Meanwhile, Texas Republicans are on a roll, as Democrats forced to return to the State House sit on their hands. They’ve adopted a creative and aggressive antiabortion law that has proven a challenge to tech companies, which responded by canceling tech services for pro-life groups and promising to defend gig workers who are caught up in litigation. Texas has kept pace, adopting a bill that limits Silicon Valley censorship of political speech; it raises many of the same issues as the Florida statute, but without the embarrassing prostration before the Disney theme park empire. I ask whether Texas could have used the same tactics for its interpretation of Section 230 that it used in the abortion bill—authorizing private suits but not government enforcement. Such tactics work when there is a real possibility that the Supreme Court will overturn some settled circuit rulings, and section 230 is ripe for exactly that.

Matthew Heiman and I debate whether the Justice Department’s dropping of several Chinese visa fraud cases heralds a retrenchment in the department’s China Initiative.

Michael and I dig into the Apple decision to alienate the Guardians of Privacy in an effort to do something about child sex abuse material on iPhones—and Apple’s recent decision to alienate the rest of the country by casting doubt on whether it would ever do something about child sex abuse material on its phones.

Finally, in quick hits, Brian doubts the significance of claims that the Israeli government is launching an investigation of  NSO Group over spyware abuse. Michael picks apart the Cyberspace Solarium Commission’s report card on Congress’s progress implementing its recommendations. And Brian highlights the UK’s new and much tougher version of CFIUS, the National Security and Investment Act 2021. I turn that into career advice for our listeners.

And more!

Download the 373rd Episode (mp3)

You can subscribe to The Cyberlaw Podcast using iTunes, Google Play, Spotify, Pocket Casts, or our RSS feed. As always, The Cyberlaw Podcast is open to feedback. Be sure to engage with @stewartbaker on Twitter. Send your questions, comments, and suggestions for topics or interviewees to CyberlawPodcast@steptoe.com. Remember: If your suggested guest appears on the show, we will send you a highly coveted Cyberlaw Podcast mug!

The views expressed in this podcast are those of the speakers and do not reflect the opinions of their institutions, clients, friends, families, or pets.